Easy Office
LCI Learning

Manner of Computing Aggregate turnover in GST

Member (Account Deleted) Guest , Last updated: 13 April 2017  
  Share


The aggregate turnover has been defined in section 2(6) of the Act as follows:

(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

The analysis of definition for computing aggregate turnover is discussed below:

(a) Turnover of all products - It is evident from definition that turnover of all the supplies whether taxable supplies, exempt supplies and exports should be aggregated to compute the limit of Rs.20 Lakhs or Rs.10 Lakhs.

(b) Turnover on basis of  PAN - It is further provided that the aggregate turnover of person having Permanent Account Number (PAN) will be computed on all India basis. Thus say, if the person has branch in 3 different states then turnover of all the branches will be considered to compute the aggregate turnover.

(c) Value of turnover will not include the CGST, SGST and IGST charged on such supply - It is also provided in definition of aggregate turnover that the value of turnover will not include the CGST, SGST and IGST charged on such supply. Thus only transaction value computed as per section 15 of the GST Act will be aggregated to compute the limit.

(d) Reverse charge and Inward Supplies - The taxable person may also be liable to pay the tax on reverse charge basis irrespective of the turnover. It is specifically mentioned in the definition that  aggregate turnover will not include the value of supply on which tax is paid on reverse charge basis and the value of inward supplies.

(e) Supply on own account and on behalf of principal will be included - The clause (i) of Explanation to section 22 of GST Act provides that in computing the aggregate turnover of supplies made by taxable person, whether on his own account or on behalf of principal needs to be computed. A person can make supply of goods on his own account and as an agent of principal also. As per clause (i) the value of both the supplies will be aggregated for the purpose of computing Rs.20 Lakhs or Rs.10 Lakhs.

(f) Supply of Goods by Principal after completion of Job Work - Clause (ii) of Explanation attached to section 22 of the GST Act further provides that in computing the aggregate turnover, the supply of goods by registered job-worker after completion of  shall be treated as supply of goods by principal and such turnover shall not be included in aggregate turnover of registered job-worker. As per clause (ii) the value of such supplies will be included in the turnover of principal for the  purpose of computing Rs.20 Lakhs or Rs.10 Lakhs.


Published by

Member (Account Deleted)
(JOB)
Category GST   Report

30 Likes   46156 Views

Comments


Related Articles


Loading